Botswana's Diamond Revenues Suffered in 2012

A reduction in the profits remitted to the government of Botswana by the diamond company it co-owns with diamond giant De Beers could spell hardship for the country, where mining makes up a large proportion of the nation's earnings, Mmegi reports.

While the government in Gaborone earned $1.08 billion from the recovery of 22.9 million carats of rough diamonds in 2011, from its 50% share in Debswana, that figure dropped by 35% to only $701 million from the recovery of 20.2 million carats of the stones in 2012. In fact, this year's revenues were the lowest annual results since 2009, when Debswana remitted $475 million to the government. These numbers include money from taxes, royalties and dividends.

These numbers are consistent with the market price for rough diamonds, which has fluctuated in recent years. In 2011, the average value of the precious gems increased by 29%, but then it decreased by 12% in 2012, according to Mmegi.

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